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Building a Sustainable Education System in NSW

Adrian Piccoli MP
Minister for Education


Tuesday 11 September 2012


NSW Minister for Education Adrian Piccoli today said the NSW Government had to make some tough decisions to ensure NSW is living within its means and to put the NSW education budget back on a sustainable financial footing.

“The NSW Government is committed to delivering high quality education and training and driving better education outcomes in schools across the State but the reality is that we are facing very difficult economic circumstances,” Mr Piccoli said.

“Today we have taken the tough decisions necessary to ensure a sustainable financial future for our State’s education system, while also continuing our investment in education and training.

“The Government is receiving $2.5 billion less in revenue each year since we were elected. This, along with the increasing cost of delivering education and training services across NSW by an average of 6 per cent each year means general expenses in the education portfolio have outstripped growth in Government revenue and this is simply unsustainable.

“Despite these economic challenges, the NSW Government reinforced its commitment to education in the recent State Budget by increasing funding to education by $383 million. Education now comprises 22.4 per cent of the State budget, an increase from 22 per cent in 2011-12. Teachers in our schools have also been protected from the labour expense cap introduced at the time of the Budget.

“We must focus on delivering education and training in the most efficient and equitable way and that is why the Government has had to make a number of tough decisions.

In making the hard decisions the Government has been mindful that all sectors and areas of the Department must contribute to efficiencies:

• Government schools will see their State & Regional office bureaucracy reduced;
• State Government funding to non-government schools will be capped for four years at the level provided in 2012/13; and
• Fees in TAFE will rise by 9.5 per cent to a level still below the national average.

“These reforms are needed to ensure the sustainability of the State education budget,” Mr Piccoli said.

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